Indian firm to export green methanol for bunkering in Sri Lanka

Indian project developer Agastya Green Fuels has signed a long-term offtake agreement with Sri Lankan bunker supplier SAR Maritime to export 250,000 mt/year of e-methanol for bunkering in Sri Lanka.

IMAGE: Container ship docked at Port of Colombo in Sri Lanka. Getty Images

Agastya Green Fuels has planned a 1 million mt/year e-methanol production and export facility at Mulapeta Port in Andhra Pradesh, India.

The project is expected to be developed over the next six years, Agastya Group chief executive Shashi K Reddy Arjula said, but did not confirm an operational timeline.

SAR Maritime will offtake a quarter of the plant's output for bunkering in Sri Lanka under the agreement.

The companies also plan to develop methanol storage and bunkering infrastructure at the ports of Colombo, Hambantota and Trincomalee to support fuel supply operations.

The partnership aims to establish a "new green maritime energy corridor connecting India and Sri Lanka", Arjula added.

By Konica Bhatt

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